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Eurodry (EDRY)
:EDRY
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EuroDry
(NASDAQ:EDRY)
43Neutral
Positive Factors
Asset Sale
Eurodry expects to book a gain of approximately $2.1 million from the sale of M/V Tasos.
Financial Performance
Analysts expect Eurodry to use free cash flow to reduce debt, indicating financial management efforts.
Market Conditions
Favorable supply and demand trends are expected to continue, with a positive outlook for higher rates in 2025.
Negative Factors
Earnings
EDRY reported 4Q24 results below expectations and announced agreements to build two new dry bulk ships with scheduled delivery in 2027.
Economic Outlook
Charter rates have continued to decline due, in part, to a weak outlook for the economy in China.
Market Rates
Dry bulk rates decreased due to lower demand in China for imports such as coal and iron, impacting shipping rates negatively.
EuroDry (EDRY) vs. S&P 500 (SPY)
Market Cap
$25.70M
Dividend YieldN/A
Average Volume (3M)3.08K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth28.35%
EPS Growth-238.53%
CountryUS
EmployeesN/A
SectorIndustrials
Sector Strength91
IndustryMarine Shipping
Share Statistics
EPS (TTM)N/A
Shares Outstanding2,826,697
10 Day Avg. Volume1,203
30 Day Avg. Volume3,083
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.30
Price to Sales (P/S)0.00
P/FCF Ratio-7.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.00Price Target Upside132.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EuroDry Business Overview & Revenue Model
Company DescriptionEuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. The company owns and operates drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. As of March 31, 2022, it operated a fleet of ten drybulk carriers comprising five Panamax drybulk carriers, two Ultramax drybulk carrier, two Kamsarmax carriers, and one Supramax drybulk carrier with a cargo capacity of 726,555 deadweight tons. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.
How the Company Makes MoneyEuroDry generates revenue through the chartering of its dry bulk vessels to customers under time charters or spot market voyages. In time charters, the company leases its vessels to clients for a fixed period at a pre-determined rate, providing a stable income stream. In the spot market, vessels are chartered for single voyages at prevailing market rates, which can be more volatile but potentially more lucrative. The company's earnings are influenced by factors such as global trade volumes, shipping demand, and fluctuating charter rates. EuroDry may also engage in strategic partnerships or joint ventures to optimize its fleet utilization and expand its market presence.
EuroDry Financial Statement Overview
Summary
EuroDry faces challenges across its financial statements, with negative net income impacting profitability and return metrics. Revenue growth is inconsistent, and cash flows are strained, particularly free cash flow. Maintaining financial stability requires addressing these issues to improve liquidity and profitability going forward.Income Statement
EuroDry's income statement reflects significant volatility. The company experienced a revenue growth of 28.32% in 2024, following a decline of 32.2% in 2023. Net profit margins are negative, with a notable decrease in net income from 2022 to 2024, indicating profitability challenges. Gross profit margins are relatively stable but insufficient to offset operating expenses, as evidenced by negative EBIT in 2024.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 1.08 in 2024, indicating balanced leverage relative to equity. However, the equity ratio of 45.06% suggests moderate reliance on debt financing. Return on equity has been negative due to net losses, highlighting the need for improved profitability.52
Neutral
Cash Flow
EuroDry's cash flow statement reveals negative free cash flow in recent years, with a significant decline in operating cash flow from 2023 to 2024. The operating cash flow to net income ratio is positive but diminishing, reflecting pressure on cash generation. Free cash flow remains under strain, demonstrating a need for better cash management.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 61.08M | 47.59M | 70.18M | 64.44M | 22.29M | Gross Profit |
| 20.81M | 8.47M | 42.12M | 43.98M | 3.84M | EBIT |
| -3.35M | 1.59M | 34.12M | 38.89M | -2.74M | EBITDA |
| 13.33M | 14.38M | 48.38M | 41.45M | 3.15M | Net Income Common Stockholders |
| -9.66M | -2.91M | 33.54M | 31.15M | -8.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.71M | 10.80M | 34.04M | 26.85M | 938.28K | Total Assets |
| 221.19M | 231.05M | 199.51M | 161.33M | 107.51M | Total Debt |
| 107.19M | 103.93M | 81.22M | 78.65M | 51.11M | Net Debt |
| 100.48M | 95.93M | 47.18M | 51.81M | 50.17M | Total Liabilities |
| 112.64M | 111.63M | 85.56M | 82.41M | 56.97M | Stockholders Equity |
| 99.69M | 109.66M | 113.94M | 78.92M | 50.54M |
| Cash Flow | Free Cash Flow | |||
| -3.92M | -53.50M | -4.80M | 2.31M | 1.71M | Operating Cash Flow |
| 4.81M | 11.81M | 32.99M | 39.14M | 2.33M | Investing Cash Flow |
| -8.73M | -65.30M | -28.40M | -36.82M | -611.11K | Financing Cash Flow |
| 1.73M | 30.47M | 3.01M | 22.61M | -6.24M |
EuroDry Technical Analysis
Negative
9.05
Price Trends
9.64
Negative
10.35
Negative
14.11
Negative
Market Momentum
-0.05
Negative
47.78
Neutral
40.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDRY, the sentiment is Negative. The current price of 9.05 is above the 20-day moving average (MA) of 8.96, below the 50-day MA of 9.64, and below the 200-day MA of 14.11, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 40.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDRY.
EuroDry Risk Analysis
EuroDry disclosed 88 risk factors in its most recent earnings report. EuroDry reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
EuroDry Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $18.25M | 1.39 | 17.20% | ― | -19.73% | -33.68% | |
68 Neutral | $32.09M | 3.94 | 13.55% | ― | 13.36% | -73.08% | |
64 Neutral | $4.44B | 11.99 | 5.16% | 249.23% | 4.01% | -11.87% | |
63 Neutral | $22.27M | 2.42 | 3.07% | ― | -45.58% | 45.06% | |
57 Neutral | $26.14M | 5.19 | 3.07% | ― | 3.83% | ― | |
47 Neutral | $21.20M | 50.67 | 0.24% | ― | 11.74% | -91.84% | |
43 Neutral | $25.70M | ― | -9.36% | ― | 28.35% | -238.53% |
* Industrials Sector Average
Performance Comparison
EDRY
EuroDry
9.05
-12.99
-58.94%
PSHG
Performance Shipping
1.49
-0.67
-31.02%
GLBS
Globus Maritime
1.06
-0.94
-47.00%
TOPS
Top Ships
5.52
-7.68
-58.18%
PXS
Pyxis Tankers
3.12
-2.12
-40.46%
CTRM
Castor Maritime
2.19
-1.84
-45.66%
EuroDry Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q4-2024)
| % Change Since: 0.56%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic steps taken by EuroDry Ltd., such as a share repurchase plan, successful refinancing, and new vessel orders. However, the company faced significant challenges, including a net loss, declining Panamax rates, and a decrease in adjusted EBITDA. Global economic concerns and a limited order book further complicate the outlook.Q4-2024 Updates
Positive Updates
Share Repurchase Program
Since the initiation of the share repurchase plan of up to $10 million in August 2022, EuroDry Ltd. has repurchased 334,000 shares for a total of $5.3 million.
Successful Refinancing
Refinancing of two vessels to a $30 million loan increased cash reserves by about $11 million.
New Vessel Orders
Signed a contract for the construction of two eco-friendly Kamsarmax bulk carriers, scheduled for delivery in 2027.
Fleet Utilization
Achieved a 100% commercial utilization rate and 99.4% operational utilization rate for the fourth quarter of 2024.
Improvement in Spot Rates
From year-end 2024 to February 2025, one-year time charter rates for Panamax vessels increased by 12%, and spot rates increased by 14%.
Negative Updates
Net Loss Reported
Reported a net loss of $3.3 million for Q4 2024, with a basic and diluted loss per share of $1.20.
Panamax Rate Decline
Panamax rates experienced a decline, with spot rates dropping to about $7,700 per day by the end of Q4 2024.
Adjusted EBITDA Decrease
Adjusted EBITDA for Q4 2024 was $4.8 million, down from $6.6 million in the same period last year.
Global Economic Concerns
The IMF projects only slight global GDP growth, with geopolitical conflicts posing risks to medium-term growth prospects.
Order Book Challenges
The order book is at just 10.5% of the fleet, indicating limited new vessel orders amid shipyard capacity constraints.
Company Guidance
In the EuroDry Ltd. conference call for the fourth quarter of 2024, the company reported total net revenues of $14.5 million and a net loss attributable to controlling shareholders of $3.3 million, or $1.20 loss per basic and diluted share. The adjusted net loss for the quarter was $0.7 million, or $0.25 per share, with an adjusted EBITDA of $4.8 million. The company incurred a $2.8 million paper loss due to an impairment on an older vessel. During this period, EuroDry refinanced two vessels with a $30 million loan, boosting cash reserves by $11 million. Their share repurchase program, extended to August 2025, has seen the repurchase of 334,000 shares for $5.3 million. The company also signed contracts for two new eco-friendly Kamsarmax bulk carriers to be delivered in 2027, each costing $36 million. EuroDry's fleet, consisting of thirteen vessels with a total cargo capacity of approximately 920,000 deadweight tons, will drop to twelve after selling the motor vessel Tassos for $5 million, with a gain of $2.1 million expected from the sale. The fleet's average age will decrease to 13.6 years post-sale. Looking ahead, the company is cautious about the dry bulk market, citing geopolitical tensions, trade policy shifts, and environmental regulations as potential challenges, while maintaining a watchful eye on fleet supply constraints and charter rate fluctuations.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.